Norton Inc. manufactures six models of leaf blowers and weed eaters. Norton's budgeting team is finalizing the sales budget for the coming year. Sales in units and dollars for last year follow:

In looking over the previous year's sales figures, Norton's sales budgeting team recalled the following:
a. Model LB-1 is a newer version of the leaf blower with a gasoline engine. The LB-1 is mounted on wheels instead of being carried. This model is designed for the commercial market and did better than expected in its first year. As a result, the number of units of Model LB-1 to be sold was forecast at 300 percent of the previous year's units.
b. Models WE-8 and WE-9 were introduced on October 1 of last year. They are lighter versions of the traditional weed eater and are designed for smaller households or condo units. Norton estimates that demand for both models will continue at the previous year's rate.
c. A competitor has announced plans to introduce an improved version of model WE-6, Norton's traditional weed eater. Norton believes that the model WE-6 price must be cut 20 percent to maintain unit sales at the previous year's level.
d. It was assumed that unit sales of all other models would increase by 10 percent, prices remaining constant.

Required:
Prepare a sales budget by product and in total for Norton Inc. for the comingyear.

Transcribed Image Text:

Product Number Sold 16,800 18,000 25,200 16,200 2,400 1,000 Price ($) Revenue LB-1 LB-2 $ 487,200 270,000 327,600 162,000 52,800 26,000 $1,325,600 WE-7 WE-9 Total